Grammarly has secured $1bn in financing from General Catalyst to expand its AI productivity platform.

The investment will be used to scale sales, marketing, and strategic acquisitions, enabling Grammarly to grow its customer base and extend its reach.

General Catalyst provided the go-to-market funding from its Customer Value Fund (CVF).

Grammarly said that its AI-powered platform is relied upon by more then 40 million users daily, contributing to an annual revenue exceeding $700m.

General Catalyst CEO Hemant Taneja said: “We have been working with the Grammarly team for years as they became an early leader in applied AI.

“We are confident that this extension of our partnership will create significant long-term value and continue to drive Grammarly’s ability to accelerate enterprise adoption through transformed workflows and communication across industries.”

According to Reuters, the funding from General Catalyst's CVF represents one of the largest investments aimed at supporting late-stage tech firms such as Grammarly in boosting growth through new customer acquisition.

This targeted capital enables the company to redirect resources typically allocated to sales and marketing toward enhancing product development.

Unlike conventional investments, General Catalyst will not take an equity stake in Grammarly.

Instead, the firm will receive a limited return tied to the revenue generated from the use of these funds, structured as a percentage of the income from customer acquisition initiatives.

In January 2025, Grammarly acquired the productivity platform Coda and appointed its former CEO, Shishir Mehrotra, as Grammarly's CEO.

Commenting on the latest investment, Mehrotra said: “Integrating Coda and Grammarly has unlocked tremendous potential for how people work and communicate. I am energised by the innovation happening across our teams as Grammarly has become a productivity platform serving everyone from individual students to growing businesses to large enterprises.

“The breadth of what we can now offer is truly compelling. With General Catalyst’s continued partnership and confidence in our vision, we can scale faster and more sustainably to reach the millions of people who can benefit from our tools.”

"Grammarly receives $1bn from General Catalyst to expand AI" was originally created and published by Verdict, a GlobalData owned brand.

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